- June 4, 2019
“Buy a Land, They’re not making it anymore” -By Mark twain
Advocates of other assets class might not agree with above quote but it’s true. With limited land our world has got and it offers investors and end-users, entrepreneur lot of opportunity in real estate as it has low risk, low volatility and high security and long term investment which can benefit more than any other investment.
In our country INDIA, home is attached with emotions and security of family and memories of lifetime, as we see our HOMES as reflections of ourselves.
Every other asset has advantages and so many disadvantages like bullion can be stolen; stock market, shares can make you rich or poor so high volatility; if you invest in fixed deposit of bank it can give you low return. But if you invest in real estate it’s always going to give you handsome return. Even market condition is not up to mark and recession period is going on it still give you profit, means you are losing some money but in your profit not in your principle amount , and if you see history of civilization land and real estate investment in any class like home, plot, commercial space etc has seen upward trend always .
- It’s safe, easy and stable- PEACE OF MIND
When in comparison to other asset classes, real estate wins because of one thing; real estate industry is far less risky and volatile. It’s stable for people who want regular monthly rentals; even in slow economy you get regular income. Famous quote by RussellSage on real estate investment “Landlords get RICH in their SLEEP”.
- You save big -TAX
One of the most important benefit of real estate investment is you save big on tax. As per Income tax Act 24 you can avail benefit/deduction up to 2 lacs on interest payment for self occupied home every year till the tenure of your home loan.
- Your Home Earn while you sleep- APPRECIATION
Steady income for rentals and saving big money on tax is fantastic but its secondary reason for real estate investment. The Primary reason for investor is appreciation in long term, value of your asset is going to increase over the period. If you had put your property on rent it takes care of your EMI. And if you sell after period of say 5-7 years it gives handsome appreciation.
- It’s Negotiable- AFFORDABILITY
If you invest in shares, stock you buy according to market price, if you buy GOLD you buy as per market price. You can’t negotiate on its price, investing in real estate is completely opposite to this scenario. You can and should negotiate about pricing, which empowers buyer to get benefit of rate at his/her budget. As regular investor or savvy buyer you can use your skills, network and market knowledge to squeeze price.
- You are the -BOSS
You are free and doing on your terms and condition in real estate, you are not replying on someone to guide you and you are not giving control to anyone, as nobody likes to give control to someone. In real estate, the success of your investment is largely depending on yourself.